Credit card delinquency rates among borrowers aged 18 to 29 have risen to 3.8 percent, the highest level in seven years. Analysts point to persistent inflation in rent, food, and transportation as key factors straining younger consumers' budgets.
Card issuers are tightening approval criteria for applicants with thin credit files while expanding hardship programs for existing cardholders showing early signs of repayment stress. Balance transfer offers with zero-percent introductory rates remain available for those who qualify.
Credit counselors urge young adults to prioritize minimum payments on all accounts, negotiate lower interest rates directly with issuers, and seek nonprofit credit counseling before accounts enter collections.
